Fed Resists Pressure to Cut Rates

Central Bank Buys Itself Time, Leaves Door Open to Easing

By

Sudeep Reddy

Updated Sept. 17, 2008 12:01 am ET

The Federal Reserve resisted Wall Street pressure to cut interest rates, even as deep fears continued to hang over financial markets.

The central bank's policy committee, in its first unanimous vote since last September, decided to leave the federal-funds rate, at which banks lend to each other overnight, unchanged at 2%. The Fed's stance suggests little interest in fighting the financial crisis with more interest-rate cuts.

Still,...

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As WSJ's Sudeep Reddy reports, the Fed left interest rates unchanged, despite market expectations. Their decision sent a clear message that the government feels lower interest rates are not the answer to this financial crisis. (Sept. 16)